Project

VF Funds, together with Pinegy Commercial Group, S.R.L., have agreed on a financing structure that will be serviced by an irrevocable revolving letter of credit, issued by the government of the Dominican Republic, to solidify the sale of power generation to CDEEE by PINEGY after successful completion and operation of the newly constructed power plant. The execution of a Power Purchase Agreement (“PPA”) falls within intended purposes of promoting the industrial development of electrical power generation for the Dominican Republic, in order to expand its energy supply to the country, with future plans of generating conditions that will allow for sufficient quantity of energy, sufficient quality of energy, and distribution of energy at a reduced rate per Kilowatt-hour. The PPA will validate the sale of the energy generated from the power plant owned and operated by PINEGY to CDEEE. The PPA is a bi-lateral agreement protecting both parties, secured by an irrevocable revolving letter of credit, from any disruptions that would have potentially surfaced.

Contractual Agreements

This agreement guarantees that any given project between a company and a countries' government will be done in a timely manner. With this being said, it tremendously reduces risk of a project not being completed and thus not generating revenue. Agreements are typically made with a countries' most elite decision makers for a plant or structure to be built and financed on behalf of the fund and a management company overseeing the construction project.

Government

It is the role of a countries' government to make the best decision when entering into a bi-lateral agreement to purchase energy from a contracted company. The sale will be executed once the source of energy has been constructed and and operating successfully through th electrical grid.

Institution

Becuase of the further validation that the PPA can deliver for investors, financial institutions find them beneficial in lowering risk for a project to be completed, making it easier for an institution to lend when needed.